Ecological Economics What is the Economy? What is Economics? What is Ecological? What is Sustainability? What is Wealth?

Context Current & future impacts and crises. Emerging solutions: many already exist. Current crises: raise fundamental questions.

Important Issues What do we want or need to do? How do we design ways to achieve it? What is Value? Drivers Scale Invisibility Social Power / class

What is Sustainability? Bruntland: "…development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Durability Definition "…refers to the ability of a society, ecosystem, or any such on-going system to continue functioning into the indefinite future without being forced into decline through the exhaustion or overloading of key resources on which that system depends." - Robert Gilman, Context Institute

Wish List definition: "Our vision for the future is of a region characterized by sustainable development, including economic vitality, justice, social cohesion, environmental protection and the sustainable management of natural resources, so as to meet the needs of the present generation without compromising the ability of future generations to meet their needs.“ -- Committee On Environmental Policy for the Economic Commission For Europe

More Qualitative “Sustainable development is a dynamic process which enables all people to realise their potential and improve their quality of life in ways which simultaneously protect and enhance the Earth’s life support systems.” --Forum for the Future (used by Interface)

Postindustrial Most Qualitative: “…development focused directly on human and environmental regeneration through both the unleashing of human creative potential, and the benign integration within of economic activities natural systems.”

Ecological Economics Concepts Empty / Full world Scale to stay within ecosystems Cost-benefit threshold for growth Different view of allocating scarce resources Intergenerational Equity Growth vs. Development Visibility & Value of ecosystem services Internalizing full costs Substitutability & complementarity Public goods & Commons

Principles of a Green Economy The Primacy of Human Need, Service, Use-value, Intrinsic Value & Quality Following Natural Flows Waste Equals Food Elegance and Multifunctionality Appropriate Scale / Linked Scale Diversity Self-Reliance, Self-Organization, Self-Design Participation & Direct Democracy Human Creativity and Development The Strategic role of the Built-environment, the Landscape & Spatial Design

3-D’s of Green Development Dematerialization Detoxification Decentralization

The Green Economy A Historical Transition: …from Quantity to Quality A Question of Potentials …not simply limits Key to Sustainability: Redefining Wealth

Industrialism: The Divided Economy Invisible Visible Use-value Exchange-value “Consumption” “Production” People Things Unpaid Paid Women Men Informal Formal Private Public

Invisible Economy (1) Total Productive System of an Industrial Society (layer cake with icing) 2 GNP-Monetized ½ of Cake Top two layers Non-Monetized Productive ½ of Cake Lower two layers GNP “Private” Sector Rests on GNP “Public” Sector Social Cooperative Love Economy Nature’s Layer “Private” Sector “Public”Sector “underground economy “Love Economy” Mother Nature All rights reserved. Copyright© 1982 Hazel Henderson

Invisible Economy (2)

Basics of a Green Economy The Service Economy “Hot Showers and Cold Beer” Nutrition, Illumination, Entertainment, Access, Shelter, Community, etc. 2. The “Lake Economy” Flowing with nature, Every output an input, Closed-loop organization, Let nature do the work

The Economy in Loops

Industrialism: Accumulation Production-for-production’s-sake Invisibility of key factors Centralization of production, massive upfront investment Focus on labour productivity : resources substitute for human energy Cog-labour: humans as component parts Regulation: controls as limits Scarcity-based: role of waste since WWII Globalization: free trade & intellectual property

Postindustrialism: Regeneration New relationship of culture to economics: centrality of human development Substitution of human creativity for resources Direct targeting of human need: conscious consumption Human-scale technologies: production ‘distributed’ over the landscape ; Integration: ALL places are places of production Qualitative Wealth is PLACE-BASED Distributed regulation: incentives for positive action throughout economy. Self-reliance / interdependence: Daly: “Trade recipes, not cookies”

Market Transformation Building full costs into market prices Making social & environmental values into market drivers: “Mindful Markets”

The New Regulation Expanding importance of Commons: social, environmental, electronic Importance of Design & Planning Rules & Regeneration Distributed Production & Distributed Regulation Embedded in Civil Society

Non-Market Non-State Production Spatial Commons / Public Space Environmental Commons Infosphere

Remuneration & Qualitative Wealth Sever work and income? Wages: tied to certain kinds of production & markets. Public goods not so well served by markets. Economic insecurity: closely related to environmental destruction.

Community as Central Human creativity as key to development. Expanding role of the Commons Resource efficiencies of localization. The place-based character of qualitative wealth

Value Revolution, Knowledge & Market Transformation Values-driven business BALLE, GET Green/social Evaluation LCA, Eco-footprints, Community Indicators Green/social Certification LEED bldg., FSC wood, LFP food Transformative /collective consumerism

Corporate Strategies Corporations as financial, not production, entities Structural problems: the ‘bottom line’ documentary: The Corporation Need to change corporate DNA Need for outside help: regulation (EPR), new enterprises networks, certification The Stakeholder Corporation & democracy

Community / Small Business The realm of cutting-edge alternatives in almost every sector Need for new & stronger networks Local market power based on solid knowledge Import substitution Regenerative finance Necessity of empowering all sections of the community Community development Plans & Indicators

Social Change Today Strategic priority of ALTERNATIVES over opposition. Community as the key locus for change, but every level requires action Need for long-term VISION Need for incremental change and PIONEER ENTERPRISES in ecological economic succession. Need for incentives/disincentives thoughout the entire economy.